U.S. Pork Exports Shine in Mexico, Dim in China

(DENVER, CO) On May 20, a 20 percent retaliatory duty on most U.S. pork exports to Mexico was removed as the U.S., Mexico, and Canada reached an agreement on steel and aluminum tariffs. Entering Mexico duty-free for the first time in nearly a year, June exports were the largest since January at nearly 60-thousand metric tons (steady year-over-year), while value climbed 13 percent to $119 million – the highest since April 2018. Despite retaliatory duties remaining in place, June also brought an encouraging rise in pork exports to China, the largest in more than three years at just less than 42-thousand metric tons (123 percent increase year-over-year), valued at $88.5 million (up 77 percent). This pushed first-half exports to China ahead of last year in volume (23 percent) and higher in value (three percent). For the China/Hong Kong region, first-half exports were our percent higher but value declined 16 percent ($427.8 million). The European Union remains the primary pork supplier to China/Hong Kong. Through May, EU exports to the region were 859,030 mt, up 27% year-over-year, valued at $1.57 billion (up 34%). China/Hong Kong has accounted for 52 percent of the European Union’s export volume this year, while the U.S. has only an 18 percent share of that market.